Question 1

What is VYM?

Accepted Answer

VYM (Vanguard High Dividend Yield ETF) is a dividend-focused ETF managed by Vanguard. It tracks the FTSE High Dividend Yield Index, investing in approximately 400+ large-cap US stocks that offer above-average dividend yields. Launched in 2006, it has an expense ratio of just 0.06%.

Question 2

How often does VYM pay dividends?

Accepted Answer

VYM pays dividends quarterly (every 3 months). Payments are typically made in March, June, September, and December, with exact dates announced each quarter.

Question 3

What is VYM's dividend yield?

Accepted Answer

VYM's dividend yield typically ranges from 2.5% to 3.5%. While lower than SCHD, it offers higher yields than VOO or VTI. With 400+ holdings, VYM provides stable dividend income through broad diversification.

Question 4

What is the difference between VYM and SCHD?

Accepted Answer

VYM holds 400+ stocks for broader diversification, while SCHD focuses on 100 high-quality dividend growers. SCHD has higher dividend growth (~11% annually), while VYM emphasizes current yield and stability. Both are excellent choices, and many investors hold both for enhanced diversification.

Question 5

What is DRIP (Dividend Reinvestment)?

Accepted Answer

DRIP (Dividend Reinvestment Plan) automatically uses your dividends to purchase additional shares. This maximizes the compounding effect and can significantly accelerate portfolio growth over the long term.

Question 6

Is VYM good for retirement income?

Accepted Answer

Yes, VYM is excellent for retirement income. Its diversified portfolio of 400+ high-dividend stocks provides stable cash flow, low expense ratio (0.06%), and quarterly payments make it ideal for retirees. Many combine VYM with other income assets for diversification.

Question 7

What are the taxes on VYM dividends?

Accepted Answer

For US investors, qualified dividends are taxed at preferential rates (0%, 15%, or 20% depending on your income bracket). For international investors, a 15-30% withholding tax may apply depending on tax treaties with the US.

Question 8

How accurate are the simulation results?

Accepted Answer

This calculator provides projections based on historical data and assumptions. Actual returns may vary due to market conditions, exchange rate fluctuations, and dividend policy changes. Please consult a financial advisor before making investment decisions.

VYM Dividend Calculator – Estimate Your High-Yield Dividend Income

VYM Dividend Calculator Inputs

VYM Dividend Calculator – Frequently Asked Questions

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